Lighting Science Group Corporation (Lighting Science), incorporated in June 1988, designs and sells energy-efficient lighting solutions, based on light emitting diodes (LEDs). It is also positioned to introduce its optimized digital lighting (ODL) products through traditional commercial and retail distribution channels and on a direct basis through its sales force, as well as through shared savings plans with commercial and municipal customers. On June 1, 2004, the Company acquired Lighting Science, Inc., a Las Vegas, Nevada-based Corporation, which owned certain intellectual property related to the design and development of ODL light bulb. The Company plans to develop and sell products, based upon the technology acquired in the acquisition of Lighting Science. During the year ended December 31, 2005, the wholly owned subsidiaries of the Company were Lighting Science, Inc. and Americare Management, Inc. With its acquisition of Lighting Science, Inc. the Company entered the field of solid-state lighting. The LED technology was used only in small-electronic devices. Unlike incandescent bulbs, which produce the full spectrum of light in a spherical pattern, LEDs emit a monochromatic focused beam that is highly directional. For many applications, such as indicators or switch illuminators, this is not a problem. But it took development of multi-chip arrays, high-flux LED chips and specialized phosphors to achieve the effect of an incandescent bulb. On September 8, 2005, the Company entered into an alliance with Amtech Lighting Services, a subsidiary of ABM Industries Incorporated, a multi-national facilities service provider, to install its ODL low-bay lights and fixtures in facilities that ABM services. The low bay product is designed for widespread, high volume use in parking garages and other applications that require high efficiency, long lasting light. Under the alliance, Amtech Lighting Services is marketing the Company's ODL products to its customers through Lighting Science Group's Shared Savings Program. As part of the Amtech Lighting Services/Lighting Science alliance, Amtech will undertake installation and maintenance of the ODL parking garage lights on behalf of its customers. The Company's portfolio of products include flashlights, cabinet lighting (Puck Light), floodlights, parking garage lighting and outdoor lighting. The Company has developed a flashlight that provides a high-candlepower output across a broader beam angle than is typical of existing LED-based flashlights and can be made available at a lower price point due to the manufacturing efficiencies created by Lighting Science Group's design. Lighting Sciences has developed a small lamp, called the Puck Light that replaces existing halogen incandescent lamps. Aside from energy savings and much longer life, the Puck Light is safer for usage inside furniture because it operates at a much lower temperature. The Company is also developing a second generation floodlight prototype that equals or exceeds existing PAR 30 65-watt floodlights sold by incumbent lighting manufacturers in terms of the amount of illumination (foot candles) measured at the surface to be illuminated across a beam angle of 50?. The Company plans initial shipments of the floodlight in 2006. The Company has developed a low bay form factor light that is competitive with conventional lights used in parking garages. The Company prototyping a form factor streetlight, which will be competitive with 150 watt-250 watt conventional streetlights on poles 30 feet or less in height. Other forms, in higher wattage equivalents (400 watts) are planned.